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Bitcoin Updates: Saylor’s Bitcoin-Linked Strategy Encounters Index Removal and Industry-Wide Sell-Off Challenges

Bitcoin Updates: Saylor’s Bitcoin-Linked Strategy Encounters Index Removal and Industry-Wide Sell-Off Challenges

Bitget-RWA2025/11/24 05:20
By:Bitget-RWA

- Michael Saylor of MicroStrategy (MSTR) defends Bitcoin-centric strategy despite 41% stock decline, claiming resilience against 80% drawdowns. - MSCI's proposed index exclusion rule (for crypto-heavy firms) threatens $8.8B in losses for MSTR , which holds 90% Bitcoin on its balance sheet. - Bitcoin treasury sector faces "player-versus-player" selloff, with 26/168 firms trading below reserves and peers like Metaplanet launching buyback facilities. - Saylor envisions $1T Bitcoin balance sheet for financial

Michael Saylor, who serves as executive chairman of

Inc. (MSTR), has reaffirmed his commitment to a Bitcoin-focused approach, even after the company's shares dropped 41% so far this year. He brushed off the price swings as "Satoshi's gift" and claimed the company could withstand a decline of up to 80%. In a CNBC interview on November 14, Saylor stated that Strategy’s treasury strategy—supported by modest leverage of 1.15 times and debt maturing in 4.5 years—gives it an edge over top-performing S&P 500 companies like Nvidia . The firm, which , keeps increasing its holdings, most recently acquiring 8,178 Bitcoin at $102,171 each .

Bitcoin Updates: Saylor’s Bitcoin-Linked Strategy Encounters Index Removal and Industry-Wide Sell-Off Challenges image 0

This optimistic outlook stands in contrast to rising worries that Strategy could be removed from major stock indices like the

USA and Nasdaq 100. In October, MSCI suggested excluding companies whose digital assets make up more than half of their total assets—a policy that would directly affect Strategy, . Analysts at JPMorgan predict this could lead to $2.8 billion in passive fund withdrawals from MSCI indices alone, and up to $8.8 billion if other index providers do the same . Saylor has pushed back, and a $7.7 billion digital credit program backed by Bitcoin. He argued that the debate over classification misrepresents his company’s hybrid business model, which to produce returns.

Uncertainty about index inclusion has

. According to Coinbase Research, the sector has entered a "player-versus-player" stage, with 26 out of 168 firms now trading below the value of their crypto reserves . Metaplanet, another significant participant, in October after its stock price dipped below its Bitcoin assets, highlighting falling valuations across the industry. Meanwhile, Strategy’s stock has dropped more than 60% from its November 2024 high, but it is still up 1,300% since it began buying Bitcoin in 2020 .

Saylor remains confident,

to support a "digital monetary institution" that would provide Bitcoin-backed loans, savings accounts, and insurance. Still, experts caution that if Bitcoin’s slump continues—its price has fallen from a $126,000 high in October to $80,700— . The company’s market-to-NAV ratio has dropped from 2.5x to 1.1x, making it harder to issue new shares . Should Bitcoin’s performance remain weak, Saylor’s assertion of "71 years of dividend coverage" as liquidity challenges increase.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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